Proceeds to be used to pay down indebtedness
MONTREAL, July 10,
2023 /CNW/ - Transat A.T. Inc. ("Transat" or the
"Corporation") entered into a sale and purchase agreement for its
land property located in Puerto Morelos,
Mexico, for US$38 million to
Finest Resorts, a luxury resort group, part of The Excellence
Collection. Finest Resorts owns and operates Finest Playa Mujeres,
in Cancun, Mexico, and
Finest Punta Cana, in Dominican Republic.
The closing of the transaction is expected to occur in Transat's
fourth quarter.
The proceeds of the sale will be used to immediately repay a
portion of the Corporation's secured facilities.
The divestiture of the land is aligned with Transat's strategic
plan to refocus on its airline activities. It should be
recalled that the Corporation had announced in 2018 the purchase of
the land as part of the development of a hotel subsidiary, for
which the activities were discontinued in 2021.
About Transat
Founded in Montreal 35 years
ago, Transat has achieved worldwide recognition as a provider of
holiday travel particularly as an airline under the Air Transat
brand. Voted World's Best Leisure Airline by passengers at the 2023
Skytrax World Airline Awards, it flies to international, U.S. and
Canadian destinations. By renewing its fleet with the most
energy-efficient aircraft in their category, it is committed to a
healthier environment, knowing that this is essential to its
operations and the destinations it serves. Transat has been
Travelife-certified since 2018. (TSX: TRZ) www.transat.com
Media:
Andréan Gagné
Senior Director, Public Affairs and
Communications
514-987-1616, ext. 104071
Financial
analysts:
Patrick Bui
Chief Financial Officer
514 987-1616 ext. 4567
Media Site:
transat.com/en-CA/corporate/media
SOURCE Transat A.T. Inc.